Alaska Vehicle Appraisal & Insurance Claim Resources

The Alaska Division of Insurance states in its consumer claims guidance: 'Alaska law requires that disputes with your insurance company about the value of a property loss you suffer be settled using an appraisal process.' The Division then describes the following procedure:

Under the Alaska Division's guidance: the insured selects an appraiser; the insurer selects an appraiser; the two appraisers select an impartial umpire; the appraisers separately state their values; if the appraisers agree, that amount is binding; if they disagree, the differences go to the umpire; agreement between one appraiser and the umpire is binding; the insured and insurer each pay their own appraiser; and the umpire determines responsibility for other expenses.

Because the Division's guidance discusses 'property loss,' the general appraisal framework should be distinguished from the separate motor-vehicle total-loss regulation under 3 AAC 26.080. The specific application of the appraisal framework to a particular automobile claim depends on the applicable policy language and the nature of the dispute.

Alaska Administrative Code 3 AAC 26.080 governs motor-vehicle total-loss settlements under first-party coverage. When first-party motor-vehicle coverage provides for ACV or replacement settlement of a total loss, the insurer must use one of the authorized settlement methods.

Under 3 AAC 26.080, the insurer may: (1) offer a comparable and available replacement vehicle, including applicable taxes, license fees, destination and delivery charges, and other ownership-transfer fees, subject to the policy deductible; or (2) make a cash settlement based on the actual cost of a comparable vehicle.

The Alaska Division also states that insurers must provide a reasonable written explanation of their valuation of motor-vehicle damages. Policyholders who receive a total-loss settlement should review the insurer's written explanation and may request additional documentation.

Alaska's vehicle market has unique characteristics, including geographic isolation, the cost of shipping vehicles to and from the contiguous states, and limited comparable vehicle availability in some areas. These factors may affect how comparable vehicle data is gathered and how ACV is determined for Alaska vehicles. Appraisers and insurers operating in Alaska should account for the Alaska market when determining ACV.

Diminished value claims in Alaska depend on the type of claim and the applicable policy language. No Alaska-specific appellate authority on diminished value has been independently verified for this page. Questions about diminished value recovery in a specific Alaska claim should be directed to a qualified attorney familiar with Alaska insurance and tort law.

Under the Alaska Division's appraisal framework, each party selects its own appraiser and the two appraisers jointly select an impartial umpire. Each party pays its own appraiser; the umpire determines responsibility for other expenses. Appraiser qualifications are governed by the applicable policy language and the Division's guidance, which requires that the umpire be impartial.

Alaska has no statewide sales tax. However, some Alaska municipalities impose local sales taxes, and applicable license fees and ownership-transfer fees may still be relevant to a total-loss settlement under 3 AAC 26.080.